Exposure management systems and tools provide a framework for aggregating, organizing, and managing risks associated with different business activities. For example, exposure management systems may be used to organize and manage market risks, which may include risks that the value of an investment or trading portfolio will decrease due to changes in various factors, such as stock prices, interest rates, foreign exchange rates, and commodity prices.
While existing exposure management systems may be capable of aggregating certain types of organizational information to organize and manage market risks associated with business activities conducted by an organization, these capabilities may be limited. For example, existing exposure management systems may only be capable of organizing and managing basic and limited risks. Organizations engaged in sophisticated trading activities, such as commodity trading companies, need to seamlessly integrate organizational trading activity data from different sources into a single exposure management system but are unable to do because existing exposure management systems are incapable of processing complex pricing and delivery terms negotiated by commodity trading companies.
There is a need for an exposure management system that is capable seamlessly integrating and managing risks associated with complex contracts, including contracts for goods or services where delivery does not coincide with payment, delivery is split into several partial deliveries, and/or pricing varies based on particular formulas.